DEECOY IS THE name of the game insofar as China’s continuing claim over the entire South China Sea.
While all eyes are closely watching Chinese vessels loitering in the 200-nautical mile Philippine exclusive economic zone, China is busy constructing more artificial islands.
Worse, the filling materials used to create islands in the West Philippine Sea are being drawn from the Philippines where Chinese companies have been commissioned to undertake dredging operations.
NOTORIOUSLY FAMOUS
There are also instances when China Communications Construction Company (CCCC), through its subsidiary China Harbor Engineering Corp. (CHEC) would use filling materials from coastal communities constantly facing floods through flood mitigation efforts.
Previous reports tagged CCCC behind the reclamation in several areas at the West Philippine Sea.
The subsidiary operates the vessels transporting dredged sand and their presence in Philippine waters — very close to the disputed areas of the West Philippine Sea — has raised national security concerns.
After all, CCCC constructed, at Beijing’s behest, artificial islands in the Mischief Reef, within the Philippines’ exclusive economic zone, reported the Philippine Center for Investigative Journalism.
CCCC DEFIES MARCOS
The dredging and reclamation has been going on despite the President’s investigation order into these activities last May with the dredged sand being used in reclaiming lands in the disputed body of water, rightfully awarded to the Philippines by the UN Convention on the Law of the Sea.
During the Senate Special Committee on Philippine Maritime and Admiralty Zones, the National Intelligence Coordinating Agency said it is looking into the possible involvement of China’s People’s Liberation Army in such operations.
The PCIJ mapped dredging operations across the country and identified at least 12 large-scale dredging projects implemented under river restoration and flood control programs.
USE OF LOCAL SAND
These projects are spread across several provinces where flooding has become a recurring concern. The dredged sand for these projects is also being used for two ongoing reclamation projects in the Manila Bay.
In Zambales, there are four dredging operations in major river systems that flow into the WPS; in Oriental Mindoro, following the suspension of two dredging projects, Governor Bonz Dolor signed an ordinance banning large-scale dredging in the province and in Occidental Mindoro, two dredging operations have been temporarily suspended following community complaints over possible environmental effects, livelihood disruption, and safety issues, the PCIJ reported.
In 2009, the World Bank banned CCCC from bidding for public works projects in the Philippines because of allegations of fraud and corruption the same month.
INVOLVEMENT OF CPLA
The National Intelligence Coordinating Agency (NICA) previously told the Senate Special Committee on Philippine Maritime and Admiralty Zones that it is probing possible involvement of China’s People’s Liberation Army in these operations.
Of the 98 vessels being used to transport the sand, 60 are operated by CHEC, based on data from the Philippine Coast Guard (PCG) and the Maritime Industry Authority (MARINA).
In addition, four ships operated by local company, Ben Line Agencies Philippines Inc., were given special permits to conduct dredging operations for CHEC.
DU30’S PIVOT TO CHINA
The dredging and reclamation projects began under the administration of former President Rodrigo Duterte, when he signed Executive Order No. 74 placing the Philippine Reclamation Authority under his office and delegating to its Governing Board the power to approve all reclamation projects.
Duterte later signed AI No. 16 creating the Manila Bay Task Force to oversee and expedite the rehabilitation of Manila Bay. The task force was mandated to implement the Supreme Court’s 2008 Writ of Continuing Mandamus directing government agencies to clean up and restore the bay.
Despite Duterte’s public objection to reclamation and avowal that no such projects would take place during his term, PRA records show that his administration greenlighted 22 reclamation projects nationwide, 13 of them in Manila Bay.
PH NATIONAL SECURITY
His successor, President Marcos allowed a review of their environmental and national security implications with former DENR Secretary Ma. Antonia Yulo-Loyzaga claimed the suspension would allow the conduct of “cumulative impact assessment.”
Fishermen under the Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas(Pamalakaya) voiced concern over the adverse effects of the reclamation projects on the livelihood of Filipino fishermen in over 32,000 hectares of fishing waters.
The US Embassy in Manila also raised concern over the participation of CCCC and CHEC in Manila Bay reclamation projects, citing its role in helping the Chinese military construct and militarize artificial islands in the South China Sea.
CARPIO’S STERN WARNING
Retired Senior Associate Justice Antonio Carpio also warned officials not to engage with these Chinese state enterprises because “they helped China seize Philippine island territories and maritime zones” by creating artificial islands that are now used as Chinese military outposts, the PCIJ said.
While most reclamation projects were ordered suspended, two projects– the 360 hectare Pasay Reclamation and Development Project of the Pasay City government in joint venture with SM Prime Holdings Inc. and the 260 hectare Pasay Harbor City Reclamation Project of Pasay City government in JV with Pasay Harbor City Corporation continued.
The Pasay Harbor City Corporation, a subsidiary of Ulticon Builders Incorporation of Charlie Gonzalez , a general contractor based in Davao City, and one of the top contractors of both the Duterte and Aquino administrations.
CHEC’S MONOPOLY
Coast Guard data show that CHEC operates mostly near coastal provinces adjacent to the WPS, according to PCG spokesman, Commodore Jay Tarriela, who told PCIJ that the WPS covers the country’s western seaboard, stretching from Batanes, Ilocos, Pangasinan, Bataan, and Zambales, down to Mindoro and Palawan, as defined under the 2013 administrative order signed by President Benigno Aquino III.
CHEC remains the dominant operator in the transport of dredged sand from coastal areas to Manila Bay. Most of its vessels are registered in the Philippines, except for 12 that were granted special permits to operate here.
MARINA allows foreign-flagged vessels to operate in Philippine territorial waters if they are under government contract or when no suitable domestic vessel is available.
MORE DREDGING SHIPS
In addition to the above, four more ships operated by Ben Line Agencies Philippines Inc. dredged for CHEC. These ships were registered in Sierra Leone, Belize, Sierra Leone, and China.
The presence of all these ships has raised red flags because both CCCC and CHEC have been involved in big construction projects that have been or may be used for military purposes.
According to the Council for Foreign Relations, 14 of the 77 China-funded port projects worldwide are potentially “dual-use.” These include CCCC-built Hambantota Port in Sri Lanka. In 2022, a Chinese satellite monitoring ship docked at the port, causing concerns that it was being used to gather intelligence on Indian missile launches.
MILITARY PURPOSES
In 2021, the US–China Economic and Security Review Commission warned of China’s construction projects on the Panama Canal, noting that these “could be turned quickly toward military capabilities” and that the People’s Liberation Army could eventually secure naval access there. CCCC and CHEC have projects on the Canal.
In the Philippines, recent events have made those concerns more urgent.
In November 2024, the Philippine Coast Guard arrested 13 undocumented Chinese nationals aboard the dredging vessel MV Harvest 89 operated by CHEC in Mariveles, Bataan, and were reportedly in possession of PLA uniforms.
SPOOFING TACTICS
Tarriela explained that some dredging vessels may be involved in AIS (Automatic Identification System) spoofing, a tactic used by the Chinese government to disguise vessels under different identities or flags, sometimes making them appear as China Coast Guard ships.
He said this is done to confuse authorities and create intimidation along coastal areas. Tarriela added that when the Philippine Coast Guard confirms that a dredger is being used for spoofing, the operator is required to explain or face suspension of operations, especially within Manila Bay.
Tarriela said, however, that as long as a company has complete permits, the Coast Guard does not look into the operator’s background; it only assesses the seaworthiness of a vessel, its compliance with the rules, and its crew, regardless of their nationality.
GAPS IN MONITORING
Alien seafarers must be certified by the Bureau of Immigration or the Department of Labor and Employment. “As long as they don’t violate any of our laws, we don’t really care,” he said.
While MARINA has not received reports of violations, MARINA Spokesman Director Luisito Delos Santos also acknowledged gaps in monitoring, stating that it’s possible some Chinese vessels are operating without proper permits, the PCIJ said.
Delos Santos also emphasized the need for a whole-of-government approach, saying that before a reclamation project is implemented, there should be an assessment of what vessels are needed and which ones carry risks so that MARINA can decide on whether or not to issue them permits.
RIVER RESTORATION
River restoration projects are part of the government’s flood mitigation efforts. These are implemented at no direct cost to the government, as private contractors are allowed to extract sand in exchange for desilting riverbeds.
In 2017, Duterte allowed dredging of heavily-silted rivers across the country to address recurring floods. He instructed the DENR and the DA to work with the Department of Public Works and Highways in carrying out dredging operations in four major rivers — Agusan River, Rio Grande de Mindanao, Pampanga River, and Cagayan River.
Under DENR Administrative Order No. 2020-07, signed by former DENR Secretary Roy Cimatu, private contractors must shoulder all expenses for dredging operations within designated river dredging zones identified by a provincial inter-agency committee.
NO GOVERNMENT COST
The order states that no government funds shall be used, and only companies with the technical and financial capacity to undertake large-scale dredging may apply for clearance through the DPWH.
The PRA told PCIJ that project proponents at the dredging sites sell sand to Manila Bay reclamation project proponents.
Contractors may recover and sell minerals obtained from dredging, provided they pay the required national and local taxes.
The order also created a provincial inter-agency committee chaired by the governor to oversee implementation, with the DENR, DPWH, MGB, and EMB as members.
NO PROBE RESULTS
Seven months after President Marcos ordered an investigation of coastal dredging activities in May 2025, no public findings have been released. NICA’s probe into possible PLA involvement, announced to the Senate, has not produced public results.
Tarriela said he was uncertain whether NICA had completed its investigation.
He however confirmed that reports exist suggesting sand extracted from Philippine coastal municipalities is being used for island reclamation in the South China Sea, but said these findings have not been publicly confirmed and he was unaware of substantial evidence supporting the claims.
Investigation is still ongoing.
SUSTAINED OPERATIONS
As of December 2025, the 60 vessels linked to CHEC continue operations.
Tarriela said the continued presence of Chinese nationals and vessels despite ongoing WPS tensions, the PCG, together with the Bureau of Fisheries and Aquatic Resources and the Armed Forces of the Philippines, continues to resist illegal activities in disputed waters.
He said the government’s commitment to protecting national sovereignty remains unchanged regardless of Chinese involvement in domestic dredging or reclamation projects.